First-Time Buyer Tips from a Melbourne Mortgage Broker

Purchasing your initial property in Melbourne can feel both exciting. As professional mortgage brokers serving the Melbourne market, we've helped thousands of first-time buyers realise their property dreams. This guide shares our top strategies to help you understand the process with confidence.

1. Know Your Borrowing Capacity

Before falling in love with properties, get a accurate idea of what you can afford:

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• Get Pre-Approved: This shows your maximum commercial loan tarneit (http://www.liberte-de-Conscience-rideuromed.org/forum-déchanges/profile/raymond8817235) amount
  
• Factor in All Costs: Remember moving costs
  
• Use Online Calculators: But consult a broker for accurate figures
  
• Consider Future Changes: Account for interest rate rises
  

2. Save Your Deposit Wisely

A strong deposit improves your options:

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• Aim for 20%: Avoid Lenders Mortgage Insurance (typically required below 20%)
  
• Explore Schemes: First Home Loan Deposit Scheme may help
  
• Genuine Savings: Most lenders want 3-6 months of consistent savings
  
• Gift Deposits: Some lenders accept parental contributions with documentation
  

3. Study Melbourne's Property Market

Area-specific knowledge is power:

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• Suburb Profiles: Compare growth projections across neighbourhoods
  
• First Home Buyer Hotspots: Look for up-and-coming areas with good infrastructure
  
• Auction vs Private Sale: Understand the strategies for each
  
• Property Types: Consider houses based on your long-term plans
  

4. Organise Your Financial Documents

Being prepared speeds up approval:

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• Standard Requirements: 3 months payslips, 2 years tax returns, ID documents
  
• Special Cases: Self-employed need ATO notices
  
• Credit History: Check your report beforehand
  
• Explain Large Deposits: Be ready to verify unusual transactions
  

5. Choose the Right Home Loan

Key considerations for first-timers:

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• Fixed vs Variable: Flexibility trade-offs
  
• Loan Features: Offset accounts, redraw facilities, etc.
  
• Comparison Rate: Looks beyond the advertised rate
  
• Future Flexibility: Consider portability options
  

6. Know Government Incentives

Victorian first-home buyers may access:

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• First Home Owner Grant: $10,000 for off-the-plan homes under $750,000
  
• Stamp Duty Concessions: Potential exemptions for properties under $600,000
  
• Shared Equity Schemes: Victorian government equity sharing programs
  
• Super Saver Scheme: Withdraw voluntary super contributions for your deposit
  

7. Engage the Right Professionals

Your support team matters:

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• Mortgage Broker: Finds competitive loans tailored to your situation
  
• Conveyancer: Handles contract aspects
  
• Building Inspector: Identifies potential issues
  
• Buyer's Agent: Can help in competitive markets (optional)
  

8. Steer Clear Of Common First-Time Mistakes

Frequent pitfalls we see:

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• Overextending Budget: Leave breathing room for unexpected costs
  
• Changing Jobs: Lenders prefer stable employment
  
• New Credit Applications: Avoid credit cards during the process
  
• Emotional Decisions: Don't overpay due to pressure
  

9. Plan for the Long Term

Think beyond purchase day:

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• Repayment Strategy: Consider fortnightly payments to save interest
  
• Future Needs: Will the property suit you in 5 years?
  
• Investment Potential: Even if it's not your long-term home
  
• Exit Strategy: Understand costs if you need to move sooner than planned
  

10. Utilise Professional Mortgage Advice

Why our Melbourne clients value broker guidance:

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• Pre-Approval Precision: We know which lenders are first-home-buyer friendly
  
• Application Polish: Present your finances in the best light
  
• Ongoing Support: We're here throughout your loan term
  
• Market Insights: Share Melbourne-specific lender preferences
  

First Home Buyer Common Questions

1. How much deposit do I really need in Melbourne?

While 5% is possible, 20% avoids LMI. With grants, some buyers achieve 5-10%.

2. What's the typical first home price in Melbourne?

Varies by area - currently $500,000-$700,000 for entry-level properties.

3. How long does the approval take?

Pre-approval in 24-48 hours, full approval typically 14-28 days.

4. Can I buy with friends as first-timers?

Yes! co-ownership are common with proper legal agreements.

5. Should I wait to save more or buy now?

Depends on market conditions - we can run comparisons for you.

Final Thoughts

Purchasing your first home in Melbourne is an achievable goal with the right preparation. By following these strategies from experienced mortgage brokers, you'll be better positioned to:

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• Navigate the complex property market
  
• Secure financing that matches your circumstances
  
• Avoid common first-time buyer mistakes
  
• Make confident decisions about your future
  

Remember - every happy homeowner was once a first-time buyer. With professional support and these insights, you'll be holding your new keys before you know it!

Ready to begin your first home journey? Contact our Melbourne mortgage broker team today for personalised advice.